Brief Exercise 16-8

On January 1, 2017 (the date of grant), Sarasota Corporation issues 1,700 shares of restricted stock to its executives. The fair value of these shares is $48,000, and their par value is $8,500. The stock is forfeited if the executives do not complete 3 years of employment with the company. Prepare journal entries for January 1, 2017, and on December 31, 2017, assuming the service period is 3 years.

Date Account Titles and Explanation Debit Credit